November

October

Workplace Rights Week 2025:  Highlights and impact

Pregnancy and parental leave, FMLA

The following information is about the state Pregnancy and Parental Leave Act and the federal Family and Medical Leave Act (FMLA).

Note:  Minnesota’s Paid Leave law, which provides paid time off during or following a pregnancy, goes into effect Jan. 1,

• Download a brochure about workplace rights for new and expectant parents
• Download a pregnancy and parental leave fact sheet
• View FAQs about the Women’s Economic Security Act (WESA)

How much leave do employees have the right to receive under Minnesota’s pregnancy and parental leave law? 

Employees may take up to 12 weeks of unpaid leave during or following pregnancy. Employees are eligible for this leave regardless of the size of their employer and the amount of time for which they have worked for their employer.

When does the pregnancy and parental leave start?

• The leave must be taken within 12 months of the birth or adoption.
• Employees must request the leave from their employer.
• Employees can choose when the leave will begin.
• Employers can adopt reasonable policies about when requests for leave must be made.

Frequently asked questions

What can count against my pregnancy and parental leave?

If you have paid leave, including sick leave or paid vacation, pregnancy and parental leave can be reduced so the total leave (pregnancy and parental plus paid leave) is not more than 12 weeks. Leave taken for prenatal care may not count against pregnancy and parental leave. If you qualify for both federal Family and Medical Leave Act (FMLA) and pregnancy or parental leave, you only have a right to 12 weeks of leave in total for childbirth or adoption of a child and any other pregnancy-related leave. You may be entitled to additional leave under FMLA for a non-pregnancy related serious health condition. If you have questions about FMLA, contact the U.S. Department of Labor at 612-370-3341 or dol.gov/whd/fmla.

Can my pregnancy and parental leave count against FMLA leave?

Yes, you only have a right to 12 weeks of leave total for birth or adoption of a child and any pregnancy-related leave, even if you qualify for both FMLA and pregnancy and parental leave. The federal Family Medical Leave Act FMLA requires employers to provide up to 12 weeks of unpaid leave in connection with the birth or adoption of a child or for a serious health condition. You may be entitled to additional leave under FMLA for a nonpregnancy-related serious health condition. If you have questions about FMLA, contact the U.S. Department of Labor at 612-370-3341 or dol.gov/whd/fmla.

Minnesota’s Paid Leave law, which provides paid time off during or following a pregnancy, goes into effect Jan. 1, 2026.

Does my employer have to continue my benefits during the leave?

Yes. Employees on pregnancy and parental leave are entitled to the same coverage and employer contribution as if they were not on leave.

Do I get my job back when I return from leave?

Yes. You are entitled to employment in your former position or one with comparable duties, hours and pay. You are also entitled to the same benefits and seniority you had before the leave. You may return to part-time work during the leave without forfeiting the right to return to full-time work at the end of the leave. It is against the law for your employer to retaliate, or take negative action, against you for requesting or taking a leave.

Note:  If you are a member of the U.S. armed services, you may have additional leave rights under the federal Uniformed Services Employment and Reemployment Rights Act. For information about these rights, call the U.S. Department of Labor at 612-370-3341.

September

Back-to-school reminder:  Youth employment rules

As the school year begins, employers should remember minors have limits on the hours they can work during the school year and certain hazardous jobs are prohibited. These rules help keep students safe, healthy and focused on learning.

Key reminders

• Age restrictions:  The type of work and hours a youth can work depend on their age.
• School-year limits:  Youth can only work certain hours on school days.

More information

• Learn more here 
• Watch the video, Child labor laws in Minnesota.

Time off for a child’s school conference:  It’s the law

Minnesota law allows parents and guardians to take up to 16 hours of unpaid leave during any 12-month period to attend school conferences or school-related activities related to their child.

Requirements

• The event cannot be scheduled during non-work hours.
• If the need for leave is foreseeable, employees must give reasonable notice to their employer.

Learn more by reviewing our fact sheet, School conferences and activities leave.

National Restaurant Workers Day is Sept. 25

On Sept. 25, we recognize the vital role restaurant workers play in driving Minnesota’s hospitality industry forward. From chefs and servers to dishwashers, hosts and managers, these workers are the backbone of one of our state’s largest economic sectors.

Many restaurant workers benefit from Minnesota’s labor protections, including minimum wage, overtime and earned sick and safe time. Let’s take a moment to appreciate their hard work and make sure their workplace rights are upheld year-round.

Restaurant, hospitality workers and employers

Are you a worker or employer in the restaurant or hospitality industry?

Workers have rights, including the right to:

• Receive one hour of earned sick and safe time for every 30 hours worked, up to 48 hours each year unless the employer agrees to a higher amount.
• Be paid at least the minimum wage and overtime pay.
• Be paid at least once every 31 days.
• Be promptly paid final wages, depending on if the worker quit or was fired.
• Receive tips, except under limited circumstances. As of Aug. 1, 2024, employees must get all their tips paid by card or e-payment.
• Get work breaks and rest periods.

Employers must follow applicable laws, including:

• Both state and federal laws, such as laws that apply to teens, restricting the number of hours they can work and prohibiting certain hazardous work activities for teens under 16 and teens under 18.
• Not taking deductions from workers’ wages for situations involving theft, damage, walkouts, loss or where the worker owes the employer money.
• Providing workers with employee wage notices upon hire and give workers a written notice or a change notice before any changes to the terms stated on the employee wage notice take effect.
• Complying with recordkeeping requirements and provide each worker with a written statement of earnings at the end of each pay period.
• Ensuring a worker meets certain requirements prior to exempting them from overtime.

September featured case

A 16-year-old was injured while working on a residential construction site in Minnesota. Under Minnesota law, minors under 18 are prohibited from engaging in hazardous occupations, including construction work. DLI investigated and issued a penalty to the employer for employing the minor in a hazardous occupation, resulting in injury. In addition, DLI provided education to the employer and put it on notice that minors cannot work on construction sites.

DEED to host Paid Leave information sessions for employers

The Minnesota Department of Employment and Economic Development (DEED), in partnership with local chambers of commerce, is hosting in-person information sessions about Minnesota’s Paid Leave program.

These events will provide an overview of the program, share the latest updates and offer a chance to get your questions answered. Employers will learn how to set up Paid Leave accounts, designate a Paid Leave administrator and make key decisions to prepare for implementation.

Question of the month

August

Farmworker Appreciation Day

August 6 is Farmworker Appreciation Day, a time to honor the individuals who help bring food to our tables. Farmworkers are essential to agriculture, often working long hours in challenging conditions. We recognize their contributions and reaffirm our support for their workplace rights, safety and dignity. Learn more about workplace protections and resources for agricultural workers and employers at dli.mn.gov/agriculture.

Minnesota’s Wage Theft Prevention Act

In addition to recognizing farmworkers, it is important to highlight the protections in place for all workers in Minnesota. In 2019, Minnesota passed one of the strongest wage theft laws in the nation to ensure workers are paid fairly and on time. Here is what the Wage Theft Prevention Act requires and how it protects workers.

Nursing home workforce standards

Question of the month

July

Labor law updates for 2025 and 2026

Minnesota employers should prepare for recent and future labor law changes, including updates to earned sick and safe time (ESST) and break and rest period requirements.

ESST updates now in effect

June

Wage claim process — what to do if you are not paid

Summer is here and, as the season heats up, it is good time to remember every worker deserves to be paid fully and fairly. This month, MNDLI are focusing on your rights to wages, final pay, legal deductions and break time for lactating workers.

If you have not been paid all the wages you have earned, you have the right to file a wage claim with the Minnesota Department of Labor and Industry’s (DLI’s) Labor Standards Division. Common reasons for filing a wage claim include:

• missing regular wages or overtime pay;
• not receiving your final paycheck; and
• unauthorized deductions.

Wage payment and deduction process

1. Were you fired or let go?
   • Did you submit a written request for wages?
     • Yes → Employer must pay within 24 hours.
     • No → Employer must pay on the next scheduled payday.

   • If the payday is within five days of your last workday → Employer has up to 20 days to pay.

2. Are you currently employed?

   • Yes → Employer must pay you at least once every 31 days.

   • If a paycheck is missing, but it has been fewer than 31 days, DLI might not accept your claim.

3. Did you receive deductions from your pay?

   • Yes → Employer cannot make deductions without prior written authorization from you.

4. Was your pay reduced?

   • Yes → Employer must provide written notice before making changes.

Situation	Deadline to pay wages
Fired (with written request)	Within 24 hours
Quit or fired (no written request)	Next payday or within 20 days
Still employed	Must be paid at least every 31 days
Wage changes	Must be in writing
Deductions	Must be authorized in writing

How to file a wage claim

1. Contact the Labor Standards Division
   • Call 651-284-5075 or email [email protected].
   • An investigator will respond within three business days.
2. Submit details to complete a claim intake
   • Provide your employer’s details, pay rate, unpaid work dates and amount, deductions (if any), last workday and wage request date (optional).
3. Investigator review
   • The intake information is submitted for supervisor review; stay available for follow-up.
4. Claim assignment
   • The supervisor assigns the claim to an investigator; the employer must respond within 10 days.
5. Claim resolution
   • The investigator works to resolve the claim; expect a results letter. Claims take about 21 days typically, but the timing may vary.

MNDLI have recently updated the wage claim webpage to make it easier to understand your rights and how to file a claim.

Know what can be deducted from your pay

Employers are not allowed to take money from your paycheck unless it is legally required (such as taxes) or you have signed a written agreement beforehand.

Common legal deductions include:

• taxes and Social Security withholdings;
• court-ordered garnishments; and
• voluntary deductions (health insurance or retirement plans).

Employers cannot deduct for mistakes or broken equipment unless you agreed to it in writing after the loss occurred. If you believe money has been wrongly taken from your paycheck, file a wage claim at dli.mn.gov/wage-claim.

June featured case

On Feb. 27, 2025, the Labor Standards Division received a wage claim from a worker who had been denied their final commissions. The employer argued that the commissions were not earned due to the employee’s termination. As a result, the employee was not paid their final commissions, despite their right to receive all properly accrued wages.

A Labor Standards Division investigator took immediate action, conducting multiple phone calls with the employer. Through persistence and thorough discussions, the wage claim investigator successfully secured $36,092.61 in back wages for the employee.

This case highlights the importance of wage claim protections and the role of labor enforcement in making sure workers receive their rightful earnings.

Did you recover unpaid wages? Inspire others!

Have you successfully recovered wages through a claim? MNDLI would love to hear your story! Your experience can help others understand the process and encourage them to seek the pay they deserve. Share your story and inspire change.

WESA quiz follow-up:  Breaks for lactating workers

Last month, MNDLI shared a quiz about the Women’s Economic Security Act (WESA) and MNDLI appreciate everyone who participated. This month, MNDLI are highlighting a key protection under WESA for new parents:  the right to express milk at work.

Minnesota law requires employers to:

• provide reasonable paid break time each day for an employee to express milk;
• offer a private space, not a bathroom, that is clean, secure and shielded from view; and
• ensure employees are not retaliated against for asking for or taking lactation breaks.

For more information, visit dli.mn.gov/newparents#milk.

Be a part of Workplace Rights Week 2025

MNDLI are planning our second annual Workplace Rights Week (Sept. 21-27, 2025) to help educate Minnesota workers and employers about their workplace rights and responsibilities.

In 2024, MNDLI visited 1,243 businesses in 29 cities, hosted webinars and joined Lt. Gov. Peggy Flanagan at a worksite event. We are aiming even higher this year!

If you want to get involved, email Diana Salas at [email protected] or visit dli.mn.gov/rights-week.

Question of the month

My employer closed its doors without paying my wages. How do I find out if it has filed for bankruptcy?

You can contact the nearest U.S. bankruptcy court clerk’s office in Duluth, Fergus Falls, Minneapolis or St. Paul for more information. If the employer has filed bankruptcy, the bankruptcy court clerk’s office will give you the name of the attorney handling the case, so that you can contact them and list your name as a creditor. You may contact the clerk of the bankruptcy court to file a preferred wage claim if there are concerns that sufficient funds will not be available to cover your wages as a creditor. Major stockholders, owners and officers of a bankrupt business may be personally liable.

Labor Standard Division staff members in Somali media

As part of our outreach to Minnesota’s diverse workforce, Somali-speaking Labor Standards Division staff members recently participated in interviews about earned sick and safe time and other workplace rights.

The conversations, conducted in Somali, were designed to help build awareness around the rights all employees are entitled to in the workplace.

• Watch the Somali TV interview.
• Listen to the Part 1 and Part 2 of the KALY Radio interview.

May

Hiring teens this summer? Know the rules

As summer nears and the school year ends, many Minnesota businesses begin hiring teens to fill seasonal roles. The Department of Labor and Industry (DLI) reminds employers about child labor laws that protect young workers, ensure safe workplaces and support their success.

Hiring teens can benefit both employers and youth, providing valuable work experience and extra help during busy months. However, state and federal laws place important limits on when teens can work and the types of jobs they can perform.

Age and hour restrictions

• Minimum age:  Generally, 14 years old, with exceptions for newspaper carriers (11 years old), agricultural workers (12 years old with parental consent), and actors, models and youth athletic referees (11 years old with parental consent).
• Under 16 work limits:  Cannot work before 7 a.m. or after 9 p.m., limited to 40 hours a week and eight hours a day (except agriculture).
• Ages 16 and 17:  Cannot work after 11 p.m. or before 5 a.m. on school nights (can extend to 11:30 p.m. or 4:30 a.m. with parental consent).

Work breaks

• Restroom breaks:  Employees must be allowed time to use the nearest restroom at least once every four consecutive hours of work.
• Meal breaks:  Employees working eight or more consecutive hours must be provided sufficient time to eat.

Additional information

• Tips and gratuities:  Teen workers in food service or hospitality have the right to keep their tips.

Tips, tip credit

Source: https://www.dli.mn.gov/tips?utm_medium=email&utm_source=govdelivery

Minnesota employers are prohibited from taking a tip credit against the minimum wage

• Employers may not count tips received by an employee toward the payment of minimum wage.
• Employees must receive the applicable minimum wage in addition to any tips they may receive.

Employers are prohibited from directing employees to pool or share tips

• No employer may require an employee to share a tip with the employer or other employees or to contribute to any tip pool, except as listed below.
• When more than one direct service employee provides direct service to a customer in a given situation such as banquets, money presented by customers as a gratuity and divided among the direct service employees is not a violation of Minnesota tip laws.
• Dividing money left in a tip jar, or the equivalent of a tip jar, among direct service employees working on the same shift is not a violation of Minnesota tip laws and related case law. A “shift” means a period of time in which a particular group of employees work together to provide direct service to customers.

Employers may take the following actions regarding tips

• Upon the request of employees, an employer may store tips to be shared by employees and disburse shared tips to employees who agree.
• An employer may report amounts received as tips for tax purposes.

Tips made by credit card or e-payment

• As of Aug. 1, 2024, employees must receive the full amount of tips paid by card or e-payment. Before this date, employers could deduct the swipe fee for these payments from tips. Now, employers must give the full tip amount to workers. Gratuities received through credit cards or other types of electronic payments must be paid to the employee in the next pay period.

Download a printable fact sheet about tip laws (Español).

• Minimum wage:  All workers must be paid at least the state’s current minimum wage. Visit mn.gov/minwage.

Minimum-wage rate to be adjusted for inflation as of Jan. 1, 2025

Effective Jan. 1, 2025, the state’s minimum-wage rates for all employers, including large employers, small employers, youth and J-1 visa wages for hotels, motels and lodging establishments, increased to $11.13 an hour. The law still allows for a 90-day training wage for workers under age 20, which increased to $9.08.

Minimum-wage rates

Provision	Amount as of Jan. 1, 2025
State minimum wage	$11.13 an hour
90-day training wage (under 20 years of age)	$9.08 an hour

Federal, state, local minimum-wage laws

• The state minimum-wage is higher than the federal minimum-wage, so employees who are covered by both laws must be paid the higher state minimum-wage.
• Minimum-wage rates apply to all hours worked, whether part time or full time.
• Employees must be paid at least the current minimum-wage rate, no matter how they are paid.
• St. Paul and Minneapolis both have minimum wage ordinances that may require a higher rate of pay. Learn more about city minimum wage requirements for Minneapolis and St. Paul.

Tip credit

• No employer may take a tip credit against minimum wages in Minnesota.
• An employee must be paid at least the minimum wage per hour, plus any tips the employee might earn.

How to determine if an employer is a large or small business

• Review the employer’s past four quarterly tax estimates or the previous year audit statement.
• Add up the gross revenue for the four most recent quarters.
• Exclude excise taxes that are listed separately.
• If the combined amount of gross revenue is more than $500,000, pay the large employer
  minimum-wage rate.

Resources

• Minnesota’s minimum wage laws
• Minnesota minimum-wage report, published December 2024
• Workplace notices and posters:  Required to be displayed for employees and updated when Minnesota law changes.

• Paid sick leave:  Youth workers earn one hour of paid sick leave for every 30 hours worked, up to 48 hours a year.

Supporting our agricultural workplace

Spring planting season highlights the essential roles of farm workers in Minnesota. These workers deserve safe conditions, fair wages and clear labor protections. This month, we are reminding agricultural employers of their legal responsibilities to: provide an employment statement for recruited migrant agricultural workers and a minimum of 70 hours pay for work in any two successive weeks; follow wage laws, including minimum wage and overtime, when applicable; and ensure compliance with child labor laws (teens working in agriculture still have protections).

Test your knowledge:  Women’s Economic Security Act

Test your knowledge of the Minnesota Women’s Economic Security Act (WESA) with MNDLI interactive quiz. WESA strengthens workplace protections, promotes economic opportunity and supports working families. Take the quiz to learn more about your rights and how this law impacts Minnesota workers.

Celebrating Small Business Month

May is National Small Business Month, a time to honor the entrepreneurs who keep Minnesota’s communities vibrant and growing. Small businesses play a vital role in job creation and economic development. MNDLI thank you for your commitment to fair labor practices and supporting local workers.

Understanding labor standards helps ensure fair workplaces. Laws employers must comply with include minimum wage, ESST, break requirements and child labor protections. Small businesses must also follow state and federal regulations, balancing compliance with employee rights.

Featured case:  ESST compliance and employer corrections

Each month, MNDLI highlight a recent compliance case to illustrate how Minnesota’s labor laws are enforced and how employers can address violations. This month’s featured case highlights an employer’s compliance review under Minnesota’s earned sick and safe time (ESST) law.

On Aug. 14, 2024, the Department of Labor and Industry received a complaint alleging multiple ESST violations, including:

• failure to provide ESST to employees;
• failure to issue required ESST notices and workplace postings;
• failure to maintain proper ESST records; and
• failure to offer benefits, such as paid time off, that could be used as ESST.

DLI investigated the employer’s practices covering the period from Jan. 1 through Aug. 20, 2024. The audit confirmed all violations. In response, the employer took corrective measures and issued $15,580.30 in unpaid ESST accruals to 79 affected employees.

Because the employer remedied the violations and committed to future compliance, DLI opted not to pursue liquidated damages or penalties.

April

Understanding overtime laws

Minnesota and federal laws require employers to pay overtime (1.5 times the regular pay rate) for hours worked beyond 48 a week under state law and 40 a week under federal law. Some exemptions apply based on job classification.* Employers and employees should stay informed about their rights and obligations.

Overtime laws

Source: https://dli.mn.gov/overtime

Paying overtime – federal law

The federal Fair Labor Standards Act requires some employers to pay overtime for all hours worked in excess of 40 per workweek. These employers include:

• employers that produce or handle goods for interstate commerce;
• businesses with gross annual sales of more than $500,000; and
• hospitals and nursing homes, personal care assistant (PCA) and community first services and supports (CFSS) agencies, private and public schools, federal, state and local government agencies.

Paying overtime – Minnesota law

The Minnesota Fair Labor Standards Act requires employers to pay overtime for all hours worked over 48 per workweek, unless the employee is exempt under Minnesota Statutes 177.23, subdivision 7.

Overtime pay must be at least 1.5 times the employee’s regular rate of pay. This is calculated by dividing the total pay in any work week by the total number of hours worked in that week.

Overtime is based on actual hours worked in a seven-day workweek, so holiday hours, vacation time and sick leave are not counted.

• Minnesota Fair Labor Standards Act  (Minnesota Statutes 177.21 through 177.35)
• Minnesota fair labor standards rules (Minnesota Rules Chapter 5200)
• View/print a flyer about Minnesota’s overtime law
• Agricultural workers overtime information

Review the federal Fair Labor Standards Act about overtime; the law requires some employers to pay overtime for all hours worked in excess of 40 a workweek. These employers include:

• employers that produce or handle goods for interstate commerce;
• businesses with gross annual sales of more than $500,000; and
• hospitals and nursing homes, personal care assistant and community first services and supports agencies, private and public schools, federal, state and local government agencies.

*For more information about misclassification, visit here.

Retaliation protections:  New resources available

Workers have the right to report law violations without fear of retaliation. Employers are prohibited from taking adverse actions against employees who exercise their workplace rights. The Department of Labor and Industry has launched a new webpage with information about retaliation protections and how to file a complaint.

Retaliation

Source: https://www.dli.mn.gov/retaliation?utm_medium=email&utm_source=govdelivery

All workers in Minnesota are protected by labor laws. The Department of Labor and Industry (DLI) will not ask about immigration status and will not report immigration status to other government agencies.

Todos los trabajadores en Minnesota están protegidos por las leyes laborales. El Departamento de Trabajo e Industria (DLI) no preguntará sobre el estatus migratorio ni reportará el estatus migratorio a otras agencias gubernamentales.

What is retaliation?

Retaliation occurs when an employer (owner, manager or supervisor) either threatens to or takes action against an employee for reporting or threatening to report concerns regarding their labor rights.

Example

An employee makes a complaint to their supervisor or DLI regarding a law, such as breaks, minimum wage or overtime, and the supervisor, manager or employer retaliates against the employee by terminating, disciplining or treating the employee differently from employees who have not made complaints. This is illegal. This is retaliation.

When are you protected from retaliation?

You have legal protections from retaliation when you:

• file a complaint with DLI’s Labor Standards Division;
• tell your employer that you plan to file a complaint;
• ask your employer about your pay, hours worked, and other wage-related concerns;
• request or take sick time off allowed under Minnesota’s earned sick and safe time law;
• report concerns related to worker protections to DLI or another government agency;
• request pregnancy or nursing-related accommodations,
• request or take pregnancy or parental leave; or
• participate in an investigation by DLI.

What type of actions might be retaliation?

Examples of retaliatory employer actions include:

• termination;
• demotion or reduction in pay;
• discipline;
• changing an employee’s position or work location;
• exclusion from meetings or trainings;
• inaccurate reports of poor performance;
• interference with future employment opportunities;
• creating an intolerable workplace;
• significant changes to an employee’s hours or regular schedule; or
• threats related to immigration status.

How can you protect yourself from retaliation?

• keep records of hours worked and pay details;
• track and document complaints or inquiries you have made about your rights;
• keep original and updated copies of your:
  • employee wage notice;
  • employer’s policies;
  • job title and duties;
  • employer’s memos, letters, emails or notices related to wage and hour laws; and
  • performance reviews and any disciplinary actions; and
• document as much as you can about the retaliation, including any conversations with your employer including contents of the conversation, dates and times and people involved or present.

For more information about how to protect your rights as a worker, see dli.mn.gov/protect-yourself.

Do you believe your employer retaliated against you?

Contact DLI at [email protected] or 651-284-5075. Helpful information to provide to DLI includes:

• contact information for any witnesses, if they are willing to provide it;
• monetary losses as a result of the retaliation;
• work hours missed as a result of the retaliation;
• job search efforts after the retaliation; and
• unemployment application information.

Find more information on Minnesota’s worker protection laws.

Comparison of earned sick and safe time and Paid Leave

Minnesota‘s earned sick and safe time (ESST) law allows workers to earn paid leave for short-term needs, such as illness, medical appointments or safety concerns, with a maximum required accrual of 48 hours a year. In contrast, starting in 2026, the state’s Paid Leave program will provide longer-term wage replacement for significant life events, such as a serious illness, bonding with a new child or caring for a family member, with up to 12 weeks of leave for each qualifying event. While ESST is employer funded and accrues over time, Paid Leave will be a state-managed program funded by employer and employee payroll contributions.

Purpose of ESST Purpose of Paid Leave Allow for accrual and use of paid time off and provide job protections for employees who are unable to work due to a qualifying reason. Provide job protections and partial wage replacement for individuals unable to work due to a qualifying condition lasting at least seven days.

Read the ESST annual report.

DLI staff members interviewed by community media organizations

DLI staff members were interviewed by local community media organizations — Hmong TV and El Minnesota de Hoy — to discuss worker rights, including earned sick and safe time and wage theft protections.

• Watch the Hmong TV interview.

• Watch the El Minnesota de Hoy interview.

Question of the month

What happens if an employer pays less than the prevailing wage on a state-funded construction or public works project?

If an employer pays less than the prevailing wage, DLI requires the employer to pay back-wages to the worker to make up the difference. MNDLI agency can also require the employer to pay penalties for failure to comply with the prevailing-wage law.

Test your knowledge:  Prevailing wage

Take DLI quick quiz to see how much you know about prevailing wage.

Find more information about prevailing wage online or contact DLI at
651-284-5091 or dli.prevwage@state.mn.us.

March

Celebrating women in Minnesota’s workforce

March is Women’s History Month, a time to honor and celebrate the incredible contributions women have made — and continue to make — to Minnesota’s labor force. From the fields, factories, classroom and constructions sites, women have been at the forefront of shaping our economy, advocating for fair labor practices and advocating for workplace rights for all.

Spotlight on the Women’s Economic Security Act

Minnesota passed the Women’s Economic Security Act (WESA) in 2014, which strengthened workplace protections and flexibility for pregnant and lactating employees, expanded employment opportunities for workers in high-wage, high-demand occupations and reduced the gender pay gap through increased enforcement of equal pay laws.

Key WESA highlights include:

• Wage disclosure protections — ensuring employees can discuss wages without fear of retaliation.
• Pregnancy accommodation — requiring reasonable accommodations for expectant mothers, such as sitting or water breaks.
• Expanded sick leave use — allowing employees to use sick leave to care for extended family members.

Women’s Economic Security Act (WESA) FAQs

Source: https://dli.mn.gov/business/employment-practices/womens-economic-security-act-wesa-faqs?utm_medium=email&utm_source=govdelivery

The Women’s Economic Security Act (WESA) strengthens workplace protections and flexibility for pregnant and lactating employees, expands employment opportunities for workers in high-wage, high-demand occupations and reduces the gender pay gap through increased enforcement of equal pay laws.

WESA annual report

• WESA annual report (December 2024)

Contents

• Wage disclosure
• Pregnancy and parental leave
• Pregnancy accommodations
• Nursing and lactating employees

Wage disclosure

Are all Minnesota employers required to include notice of the Wage Disclosure Protection law in their employee handbook?

Yes, every Minnesota employer must comply with the new Wage Disclosure Protection law in the Women’s Economic Security Act. Under this law, no employer can prohibit employees from disclosing their own wages. (See Minnesota Statutes 181.172.)

Employers that provide an employee handbook to their employees must include in the handbook a notice of employee rights and remedies under the Wage Disclosure Protection law. The following is a sample notice to employees.

Notice to employees:  Under the Minnesota Wage Disclosure Protection law, you have the right to tell any person the amount of your own wages. Your employer cannot retaliate against you for disclosing your own wages. Your remedies under the Wage Disclosure Protection law are to bring a civil action against your employer and/or file a complaint with the Minnesota Department of Labor and Industry at 651-284-5075 or 800-342-5354.

Pregnancy and parental leave

Are all employees who become parents eligible to receive pregnancy and parental leave?

Yes, all employers, regardless of size, must provide up to 12 weeks of unpaid pregnancy and parental leave to an employee, unless the employer agrees to a longer leave.  Employees have a right to this unpaid pregnancy and parental leave regardless of how long the employee has worked for that employer.

Minnesota’s Paid Leave law, which provides paid time off during or following a pregnancy, goes into effect Jan. 1, 2026.

Are employees who take pregnancy and parental leave entitled to the same job after returning from leave?

Yes, employees are entitled to return to their former positions or to positions of comparable duties, number of hours and pay.

Is an employee entitled to use pregnancy and parental leave in addition to Family and Medical Leave Act (FMLA) leave?

No, Minnesota pregnancy and parental leave runs concurrent to FMLA leave. However, if an employee takes FMLA leave for unrelated reasons (such as a back injury not caused by the pregnancy), the employee will still be entitled to 12 weeks of leave for pregnancy-related illness and parental leave in that same year.

If the employee uses paid vacation or sick time for part of the time off for the birth of a child or for health conditions related to the pregnancy, is the employee entitled to an additional 12 weeks of unpaid pregnancy and parental leave?

No, the employer is not required to allow more than a total of 12 weeks of leave related to the pregnancy and childbirth, including both paid and unpaid leave.

When can an employee take parental leave?

An employee must begin the 12 weeks of parental leave within 12 months of the birth or adoption of a child. An exception is made if a child must remain in the hospital longer than the mother, in which case the leave must begin within 12 months after the child leaves the hospital.

How much notice must an employee provide an employer when requesting pregnancy and parental leave?

An employer may require an employee to provide reasonable notice of the date the leave will begin and the estimated length of the leave.

How can an employee use the 12 weeks of pregnancy and parental leave?

An employee can take the 12 weeks of leave consecutively and under limited circumstances may be able to take the leave intermittently, provided the leave begins within 12 months of the birth or adoption of a child.

Can an employee request more than 12 weeks of pregnancy and parental leave?

The Women’s Economic Security Act only requires 12 weeks of unpaid pregnancy and parental leave; however, it is up to the employer whether to grant employees additional unpaid leave. If additional unpaid leave is provided by the employer, employees are still entitled to their job after the approved leave time is completed.

Minnesota’s Paid Leave law, which provides paid time off during or following a pregnancy, goes into effect Jan. 1, 2026.

Who should employees call if they believe they qualify for leave but are not being allowed to take the leave?

Employees who believe they are entitled to leave but are not receiving the leave should contact the Minnesota Department of Labor and Industry at 651-284-5075 or 800-342-5354 to get more information about whether they qualify and/or to make a complaint.

Who should employees call if they believe they are being discriminated against because they are pregnant?

An employee who believes their employer has discriminated against them because they are pregnant may contact the Minnesota Department of Human Rights for possible pregnancy or sexual discrimination claims by visiting mn.gov/mdhr or calling 651-539-1100 or 800-657-3704.

• For more information, see the pregnancy and parental leave and FMLA FAQs.

Pregnancy accommodations

What employees are entitled to pregnancy accommodations?

Any employee who needs an accommodation related to pregnancy or childbirth is entitled to reasonable accommodations regardless of the size of their employer.

What accommodations must an employer provide to an employee who is pregnant?

A pregnant employee is entitled to these accommodations without having to provide a note from a doctor or any other “proof” that the accommodation is necessary:

• more frequent or longer restroom breaks or food and water breaks;
• seating; and
• a limit of lifting more than 20 pounds.

In addition to providing the three accommodations listed above, an employer must actively engage with an employee to find other ways to reasonably accommodate the employee during pregnancy, provided the accommodation does not pose any undue hardship on the employer. Additional reasonable accommodations could include, but are not limited to, time off for prenatal care, temporary leave of absence or modification in work schedule or job assignments.

The employer cannot require a pregnant employee to accept any of these accommodations if the employee does not want them.

What is the best way to ensure my company is abiding by the laws under the Women’s Economic Security Act?

It is a good idea for employers to update employee handbooks to reflect all changes in the law since the enactment of WESA. Questions can be directed to the Minnesota Department of Labor and Industry at 651-284-5075 or 800-342-5354.

Nursing and lactating employees

Am I required to give a notice to my employees of their rights under the Nursing Mothers, Lactating Employees, and Pregnancy Accommodations law? 

Yes, all employers must provide a notice of their nursing employees’ rights at the time of hire and when an employee makes an inquiry about or requests parental leave. This required notice must also include information about the right to receive a reasonable pregnancy accommodation.

Does the employer have to be a certain size before it is required to comply with the Nursing Mothers, Lactating Employees, and Pregnancy Accommodations law?

No, the size of the employer does not matter. If the employer has just one employee, the employer is required to comply with this law.

Can an employer require an employee to make up time for breaks taken to express milk at work?

No, an employer cannot reduce an employee’s compensation for time taken to express milk. While breaks to express milk may run concurrently with breaks already provided, including existing unpaid breaks, employers can’t reduce an employee’s pay or require an employee to make up time used to express milk.

Can an employer require an employee to use paid leave benefits such as sick time, vacation or paid time off for time used to express milk?

No, an employer may not reduce an employee’s compensation for time used for the purpose of expressing milk. Compensation includes earned or accrued leave benefits.

What type of space must the employer provide for an employee to express milk?

The clean, private and secure space provided to express milk must:

• be in close proximity to the work area;
• be a room other than a bathroom or toilet stall;
• be shielded from view;
• be free from intrusion from coworkers and the public; and
• include access to an electrical outlet.

An employer is held harmless from providing space that complies with these requirements if reasonable effort has been made.

Why WESA matters today

More than a decade since it was signed into law, WESA’s protections remain critical in building a more equitable labor market. With continued advocacy, MNDLI can address ongoing challenges, such as wage gaps, support for new parents and barriers to leadership roles.

Paid Leave confirms premium rate for 2026, hosts webinar

Earlier this month, Paid Leave at the Department of Employment and Economic Development confirmed that when Paid Leave begins in 2026, the premium rate will be 0.88%. The premium rate is a percentage of an employee’s wages that will be paid by the employee and their employer to fund the program. A new calculator tool can help employers and employees estimate their costs under Paid Leave. The tool gives an estimate of the premiums that will be first due in April 2026.

Rulemaking notice:  Earned sick and safe time rule draft available

The rulemaking process welcomes public input, allowing for revisions based on received feedback. Stakeholders should see these draft rules as a work in progress and are encouraged to share their input before the comment period closes April 2, 2025.

1. Submitting questions and comments:  Stakeholders can email [email protected] with questions about the rulemaking process or feedback on the draft rules.
2. Accessing the draft rules:  A draft of the proposed rules can be found here.

The rule draft and additional information is available on MNDLI rulemaking docket page.

Break and meal periods:  Understanding your rights and responsibilities

It is important that employees and employers know labor laws about rest and meal breaks to promote a healthier work environment and avoid legal issues. Meal breaks In Minnesota, labor laws stipulate that employees who work eight or more consecutive hours must be given sufficient time to eat a meal. Here’s what the laws cover. Unpaid breaks:  Meal breaks do not have to be paid, but employees must be completely relieved of their duties during this time. This means no folding napkins, food preparation, washing dishes or any work-related tasks. Adequate time:  Employers should provide enough time for employees to eat without feeling rushed. A well-rested employee is more productive and satisfied with their job. Rest breaks Rest breaks are also an essential part of maintaining a healthy work environment. According to Minnesota labor laws an employer must: allow each employee adequate time from work within each four consecutive hours of work to use the nearest convenient restroom; and provide employees with restroom time and sufficient time to eat a meal, and if the break is fewer than 20 minutes in duration, it must be counted as hours worked. Scheduling regular rest breaks helps prevent fatigue and burnout, leading to a more efficient and motivated workforce. For more information about breaks, see Minnesota Statutes 177.253 and 177.254, and Minnesota Rules 5200.0120.

Question of the month

Is an employee entitled to use pregnancy and parental leave in addition to the federal Family and Medical Leave Act (FMLA) leave?

No, Minnesota pregnancy and parental leave runs at the same time as FMLA leave. However, if an employee takes FMLA leave for unrelated reasons, such as a back injury not caused by the pregnancy, the employee will still be entitled to 12 weeks of leave for pregnancy-related illness and parental leave in that same year.

February

Understanding worker misclassification

Worker misclassification occurs when an employer incorrectly labels employees as independent contractors. Misclassifying employees as independent contractors is an issue because misclassified workers often do not receive:

• minimum wages;
• overtime pay;
• earned sick and safe time;
• unemployment benefits;
• workers’ compensation coverage;
• pregnancy and parental leave; and
• other workplace protections that properly classified employees are entitled to under the law.

Misclassification FAQs

The frequently asked questions (FAQs) below answer questions often received by the Minnesota Department of Labor and Industry (DLI) related to worker misclassification and independent contractor status. The FAQs are intended as informational and guidance only and do not have the force or effect of law. DLI cannot provide legal advice or advisory opinions. Employers and workers may wish to consult with legal counsel. These FAQs are not a substitute for review of the applicable laws and rules and should not be considered comprehensive. To review Minnesota’s misclassification laws, see Minnesota Statutes sections 181.722 and 181.723.

Note:  Minnesota Statutes section 181.723, subdivision 4 (independent contractor test), is effective for building construction or improvement services provided or performed on or after March 1, 2025. Before this date, the previous version of the independent contractor test is in effect.

General misclassification FAQs

1. What is worker misclassification?

Misclassification occurs when an employer classifies, represents or treats a worker who is an employee under Minnesota or federal law as an independent contractor.

2. What is the impact of worker misclassification?

Misclassifying employees as independent contractors is a problem because misclassified workers often do not receive minimum wages, overtime pay, earned sick and safe time, unemployment benefits, workers’ compensation coverage, pregnancy and parental leave, and other workplace protections that properly classified employees are entitled to under the law. In addition, employers who misclassify workers may avoid paying payroll taxes and other costs that employers operating lawfully must pay. By evading legally required costs employers who misclassify receive an unfair competitive advantage over law-abiding employers.

3. If an employer has misclassified a worker, is the employer liable for the underlying benefits and worker protections not provided to the misclassified worker?

Employers who misclassify workers may be liable for back wages and other benefits unlawfully withheld, including minimum wages, overtime pay and earned sick and safe time, as well as other compensatory damages the worker would have received had they been properly treated as an employee. Employers may additionally be liable for penalties, liquidated damages and other remedies. If an employer has misclassified a group of workers over an extended period, potential monetary liabilities may be significant.

4. What should an employer do to make sure it is properly classifying its workers?

Employers should evaluate each worker individually, consult state and federal independent contractor tests and seek advice from legal counsel as needed.

5. What is an independent contractor test?

State and federal laws and rules have established multi-factor or multi-element independent contractor tests to determine the employment relationship between a worker and an employer, meaning whether a worker is an employee or an independent contractor. These tests are present in state unemployment, tax, wage and hour, and workers’ compensation laws and rules. Multi-factor or multi-element independent contractor tests often ask a series of questions that guide employers about how to properly classify a worker. The independent contractor test for general misclassification in the wage and hour context is found in Minnesota Statutes section 181.722, subd. 3, and the independent contractor test for misclassification in the residential and commercial construction context is found in Minnesota Statutes section 181.723, subd. 4.

6. When I started my job, I was not asked to fill out an I-9, W-4 or any other tax form. Does that mean I’m an independent contractor?

While it is both standard practice and required under federal law for someone entering an employee-employer relationship to fill out certain federal forms, not being asked to fill them out does not make you a properly classified independent contractor. This practice may indicate the employer is classifying or treating you as an independent contractor; however, it does not necessarily mean that is the correct classification. An employer must consider and apply the applicable independent contractor tests to determine if a worker should be classified as an employee or an independent contractor.

7. If I received a 1099, does that mean I’m an independent contractor?

Receiving a 1099 likely means the employer is classifying or treating you as an independent contractor; however, this does not necessarily mean you are being correctly classified as an independent contractor instead of an employee under applicable independent contractor tests.

8. What activities related to worker misclassification violate Minnesota law?

The prohibited activities related to worker misclassification can be found in Minnesota Statutes sections 181.722, subd. 1, and 181.723, subd. 7. The prohibited activities are:

• Failing to classify, represent or treat an employee as an employee in violation of any applicable law.
• Failing to report or disclose an employee as an employee to a government entity when required to do so by applicable law.
• Requiring or requesting that an employee enter into an agreement or complete any document that misclassifies, misrepresents or treats an employee as an independent contractor.

The prohibited activities above apply to all industries. The following additional prohibited activities apply specifically to the residential and commercial construction industry:

• Requiring an employee to register under Minnesota Statutes section 326B.701.
• Requiring an employee to do any of the following as a condition of payment:
  • register as a construction contractor under Minnesota Statutes section 326B.701;
  • agree to being treated, represented or classified as an independent contractor; or
  • form a business entity.

9. What damages and penalties could an employer face if it violates the prohibited activities listed above?

Potential damages and penalties include:

• Compensatory damages to the employee the employer failed to classify, represent or treat as an employee including, but not limited to, minimum wage, overtime, shift differentials, vacation pay, sick pay, other forms of paid time off, health insurance, life and disability insurance, retirement plans, saving plans, employer contributions to unemployment insurance and Social Security and Medicare, as well as any costs and expenses incurred by the employee resulting from the misclassification.
• A penalty of up to $10,000 for each violation of the prohibited activities.

Employers can also face the following penalties:

• A penalty of up to $10,000 for each employee the employer fails to classify, represent or treat as an employee pursuant to Minnesota Statutes sections 181.722 or 181.723.
• A penalty of $1,000 per day for any person who delays, obstructs or otherwise fails to cooperate with DLI’s investigation.

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Residential and commercial construction worker misclassification FAQs

10. What does Minnesota Statutes section 181.723, subd. 3, mean by “an individual who provides or performs building construction or improvement services for a person that are in the course of the person’s trade, business, profession or occupation is an employee of that person and that person is an employer of the individual?”

An individual is an employee if they are providing or performing services that are in the course of the hiring entity’s trade, business, profession or occupation, unless the individual meets the independent contractor test to establish independent contractor status under Minnesota Statutes section 181.723, subd. 4. In other words, if you are hiring an individual to provide or perform services that are in the course of your trade, business, profession or occupation, the individual is your employee unless all the elements outlined in Minnesota Statutes section 181.723, subd. 4, are satisfied.

11. According to Minnesota Statutes section 181.723, subd. 4(a), “[a]n individual is an independent contractor and not an employee of the person for whom the individual is providing or performing services in the course of the person’s trade, business, profession or occupation only if the individual is operating as a business entity that meets all of the statutory requirements at the time the services were provided or performed.” What is considered a business entity?

The law defines a business entity as a legal or commercial entity including, but not limited to, a sole proprietor, LLC, LLP, corporation, partnership, incorporated or unincorporated association or joint stock company, but does not include an individual. Individual is defined as a human being. In essence, the individual needs to be in business for themself, meaning operating as an independent business entity, to qualify as an independent contractor. This is necessary in addition to meeting all of the elements in the independent contractor test under the law to be considered an independent contractor.

12. I want to hire someone to do some home repairs on my own home. Will they be considered my employee?

Generally, no, they will not be considered your employee. The independent contractor test in Minnesota Statutes section 181.723, subd. 4, only applies when you have engaged someone to provide or perform services that are in the course of your trade, business, profession or occupation.

13. What records is a contractor required to collect from a subcontractor to verify the subcontractor is properly classified as an independent contractor? Is the contractor required to periodically check to ensure these records are current?

The law does not require contractors to collect any specific records to verify the statutory requirements of the independent contractor test at Minnesota Statutes section 181.723, subd. 4, are met; however, record and other documentation verification is a best practice. The law does require that contractors retain all the information and documents they based any independent contractor determination on for at least three years and that this information be maintained in a manner where it can be readily produced to DLI upon demand. The extent to which a contractor chooses to require documents for verification of statutory requirements is a question of risk tolerance and may be informed by factors such as repeated business relationships. Contractors may consider checking publicly available information, such as the Secretary of State website or a portfolio of work contained on a subcontractor’s website. Contractors may also consider requesting representative proof of compliance with other requirements of the independent contractor test such as tax or insurance requirements.

14. On my job, materials are purchased on a tax-exempt basis and I’m the owner’s “purchasing agent.” Can I be considered an independent contractor on this project if I don’t own the materials at any point?

The independent contractor test requires an independent contractor owns, rents or leases equipment, tools, vehicles, materials, supplies, office space or other facilities that are used by the independent contractor’s business entity to provide or perform building construction or improvement services. This requirement assesses the business entity generally and not at a specific project or contract level. No single item on this list, such as materials, is in and of itself determinative. The focus of this requirement is whether the business entity demonstrates sufficient investment to be able to independently move from job to job for different customers.

15. I’m a subcontractor and do all of my work for one general contractor for all of its projects. Can I be considered an independent contractor or do I have to work for more than one customer or contractor to be an independent contractor?

One requirement of the independent contractor test is that an independent contractor must provide, perform or offer to provide or perform services for multiple people or entities or the general public. Offering services to multiple people or the general public does not require a business entity to accept jobs it does not want or that it is unable to accommodate due to previous commitments. If you are free to accept jobs from other customers at your own discretion and are available for solicitation of such jobs, this requirement may be satisfied.

16. I’m a general contractor and my subcontractor told me it forgot to file its LLC renewal, resulting in its registration lapsing six months ago. Is my subcontractor now my employee?

All requirements of the independent contractor test, including holding a current business registration, must be satisfied at the time the subcontractor’s services are provided or performed to be considered an independent contractor.

17. When assessing whether my subcontractor meets the independent contractor test, who should I contact if I can’t figure out whether they have required licenses, registrations or certifications?

This information is generally available at ims.dli.mn.gov/ims. You can also contact DLI’s Construction Codes and Licensing Division at 651-284-5074 (registration), [email protected] or 651-284-5069 (enforcement).

18. One of the independent contractor test requirements is that an independent contractor must operate under a written contract to provide or perform specific services. What must be included in the contract?

The written contract must:

• be signed and dated by both an authorized representative of the independent contractor and of the person for whom the services are being provided or performed;
• be fully executed no later than 30 days after the date work commences (this does not apply to change orders);
• identify the specific services to be provided or performed under the contract; and
• provide for compensation from the person for the services provided or performed under the contract on a commission or per-job or competitive bid basis and not on any other basis.

19. I am a general contractor who has master subcontract agreements with subcontractors and issues job-specific work orders for each job. Is that sufficient to satisfy that compensation under the written contract must be on a “per-job” basis?

Where the responsibilities and relationships on a project are governed by multiple documents, those documents may be examined together as part of the written contract to determine if the independent contractor test requirements are met. Job-specific work orders that result in actual payment on a per-job basis for specific services identified for that job may satisfy the test if, combined with other governing documents, all the test requirements are met.

20. Is “scope of work:  carpentry as per plans and specs” a good enough description to satisfy that a written contract must identify the “specific services to be provided or performed?”

Where written contracts reference and incorporate other documents, such as plans and specifications, those documents may be examined together as part of the written contract to determine if the independent contractor requirements are satisfied.

21. I do not have a signed contract with my subcontractor. Are they now my employee?

The independent contractor test requires that a written contract be signed by an authorized representative of both parties and that it be fully executed no later than 30 days after the work commences (except for change orders) in order for a subcontractor to meet the requirements of the test.

22. My subcontractor gave me a ticket for work performed on a carbon paper booklet that said, “paint hall, total cost $800 due now.” I wrote him a check based on that ticket. Is that sufficient under the independent contractor test or do I need him to send me an invoice?

The independent contractor test requires that an independent contractor submit invoices and receive payments for the completion of specific services provided or performed in the name of its business entity. The test does not contain additional requirements about the form of invoices. If the specific services provided or performed are invoiced in the name of the business entity and payment is received in the name of the business entity, this requirement is met as long as payments are not made in cash.

23. The project owner’s specifications require a very specific process for mixing mortar on my historic renovation project. Does following these specifications make me an employee?

Compliance with items such as technical project specifications, plans and code requirements do not, on their own, make a subcontractor an employee. The independent contractor test requires that an independent contractor be responsible for the completion of the specific services in the written contract, as well as for failure to complete the specific services in the contract.

24. My subcontractor did not complete the work called for in the subcontract. Are they now an employee rather than an independent contractor?

A failure to complete work does not impact whether a subcontractor is considered an employee or an independent contractor. Rather, the independent contractor test requires that an independent contractor be responsible for completion or failure to complete the specific services in the written contract.

25. I want to use a cost-plus or time and materials contract with my subcontractor, under which it will not have any opportunity for “additional profit” or “loss.” Does this make my subcontractor an employee?

Determination of whether a contract meets the requirements of the independent contractor test requires a case-by-case analysis. The test requires that under the contract the hired person may realize additional profit or suffer a loss if the costs and expenses to provide or perform the contracted services are less than or greater than the compensation provided under the contract. If this requirement is not met, the contract does not satisfy the independent contractor test. This requirement was also required under the previous independent contractor test for the residential and commercial construction industry.

26. I hired a subcontractor who I thought was an independent contractor, but it turns out they are classified as an employee. If I didn’t know about it, am I individually liable?

An owner, partner, principal, member, officer or agent may be individually liable for knowingly or repeatedly engaging in the prohibited activities as described in question eight. The law defines “knowingly” as “knew or could have known with the exercise of reasonable diligence.”

27. If my subcontractor does not meet the independent contractor test and is, therefore, my employee, will their employees and subcontractors become my employees?

A contractor is the employer of any individual providing or performing construction services in the contracting chain below them unless an intervening business entity and contract meet the independent contractor test. No employment relationship will be created between a contractor and an individual in the contracting chain below if an intervening business entity treats that individual as an employee in compliance with applicable laws.

Updated misclassification law impacting the construction industry

Misclassifying workers who are employees as independent contractors is a violation of Minnesota law. Following the 2024 legislative session, state misclassification laws were updated, including the following. Starting March 1, 2025, the independent contractor test will change from nine to 14 requirements. While many of the 14 requirements are similar to the earlier version of the law, contractors should review the updates to ensure compliance.

Construction Worker Misclassification

Under Minnesota law, it is illegal for employers to misclassify workers who are employees as independent contractors. Employers cannot ask workers to complete documents that would misclassify or misrepresent them as an independent contractor; they also cannot require a worker who is an employee to register as a construction contractor. Minnesota has a specific law about misclassification of workers in the construction industry who provide commercial or residential building construction or improvement services.

In the commercial or residential building construction industry, workers are considered employees unless they meet the nine legal requirements to be considered independent contractors. Starting March 1, 2025, this independent contractor test will change to 14 requirements. See below for more information about the updated independent contractor test.

Effective March 1, 2025, an individual providing or performing commercial or residential building construction or improvement services is an independent contractor only if the individual operates as a business entity that meets all of the following requirements when services are provided or performed:

1. was established and maintained separately from and independently of the person for whom the services were provided or performed;
2. owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, or other facilities that are used by the business entity to provide or perform building construction or improvement services;
3. provides or performs, or offers to provide or perform, the same or similar building construction or improvement services for multiple persons or the general public;
4. is in compliance with all of the following:(i) holds a federal employer identification number if required by federal law;(ii) holds a Minnesota tax identification number if required by Minnesota law;(iii) has received and retained 1099 forms for income received for building construction or improvement services provided or performed, if required by Minnesota or federal law;(iv) has filed business or self-employment income tax returns, including estimated tax filings, with the federal Internal Revenue Service and the Department of Revenue, as the business entity or as a self-employed individual reporting income earned, for providing or performing building construction or improvement services, if any, in the previous 12 months; and(v) has completed and provided a W-9 federal income tax form to the person for whom the services were provided or performed if required by federal law;
5. is in good standing as defined by section 5.26, if applicable;
6. has a Minnesota unemployment insurance account if required by chapter 268;
7. has obtained required workers’ compensation insurance coverage if required by chapter 176;
8. holds current business licenses, registrations, and certifications if required by chapter 326B and sections 327.31 to 327.36;
9. is operating under a written contract to provide or perform the specific services for the person that:(i) is signed and dated by both an authorized representative of the business entity and of the person for whom the services are being provided or performed;(ii) is fully executed no later than 30 days after the date work commences;(iii) identifies the specific services to be provided or performed under the contract;(iv) provides for compensation from the person for the services provided or performed under the contract on a commission or per-job or competitive bid basis and not on any other basis; and(v) the requirements of item (ii) shall not apply to change orders.
10. submits invoices and receives payments for completion of the specific services provided or performed under the written proposal, contract, or change order in the name of the business entity. Payments made in cash do not meet this requirement;
11. the terms of the written proposal, contract, or change order provide the business entity control over the means of providing or performing the specific services, and the business entity in fact controls the provision or performance of the specific services;
12. incurs the main expenses and costs related to providing or performing the specific services under the written proposal, contract, or change order;
13. is responsible for the completion of the specific services to be provided or performed under the written proposal, contract, or change order and is responsible, as provided under the written proposal, contract, or change order, for failure to complete the specific services; and
14. may realize additional profit or suffer a loss, if costs and expenses to provide or perform the specific services under the written proposal, contract, or change order are less than or greater than the compensation provided under the written proposal, contract, or change order.

If you believe you have been misclassified as an independent contractor or have questions, contact the Department of Labor and Industry’s Labor Standards Division at 651-284-5075 or [email protected].

Meat and poultry processing workers’ rights

Workers in the meat and poultry processing industry have workplace rights and protections, including: a safe and healthy work environment; fair wages and overtime pay under state and federal law; protection against retaliation for reporting unsafe conditions; and the ability to organize and advocate for better working conditions. The Department of Labor and Industry (DLI) is committed to ensuring these rights are upheld and encourages workers to report violations or unsafe working conditions.

Learn more about the Safe Workplaces for Meat and Poultry Processing Workers Act law and recent recommendations for meat and poultry processing workers in MNDLI 2024 report.

Black History Month

February is Black History Month, a month to reflect on the historic and ongoing fight for equal rights in the workplace. From the early labor organizing of Black workers to landmark civil rights legislation, the push for fair wages and safe working conditions continues today. Minnesota remains committed to advocating workplace equity and inclusion for all workers. For more information about workplace rights and protections, or to report a violation, visit dli.mn.gov/laborlaw.

Question of the month

What should an employer do to make sure it is properly classifying its workers?*

Employers should evaluate each worker individually, consult state and federal independent contractor tests, and seek advice from legal counsel as needed.

The independent contractor test for general misclassification in the wage and hour context is found in Minnesota Statutes section 181.722, subd. 3, and the independent contractor test for misclassification in the residential and commercial construction context is found in Minnesota Statutes section 181.723, subd. 4.

*Beginning March 1, 2025, the independent contractor test will expand from nine to 14 elements. MNDLI will update the website with the new information when it becomes available.

Test your knowledge:  Earned sick and safe time

Take MNDLI quick quiz to see how much you know about earned sick and safe time (ESST).

Find more information about ESST online or contact DLI at 651-284-5075 or [email protected].

January

New year, new resolutions:  Understanding earned sick and safe time

As MNDLI step into the new year, it’s the perfect time to set resolutions that prioritize well-being, fairness and work-life balance. For employees and employers alike, one resolution to embrace is understanding and effectively using earned sick and safe time (ESST). This workplace benefit ensures everyone has access to time off when they need it most — whether for illness, safety or caregiving responsibilities.

By understanding your rights and responsibilities, you can make 2025 a year of safety, wellness and balance.

How ESST benefits employees

• Take care of yourself and loved ones:  Use ESST for mental or physical illness, treatment or preventive care.
• Safety first:  ESST covers absences due to domestic abuse, sexual assault or stalking affecting you or a family member. For details, visit sickleave.mn.gov.
• Boost employee morale:  Offering ESST shows you care about employee well-being, fostering trust and loyalty.
• Maintain productivity:  Employees can recover at home without spreading illness.
• Ensure legal compliance:  Understanding the ESST law avoids penalties and supports a fair, positive workplace.

Understanding ESST carryover

Employers must carry over unused ESST hours unless they front-load them. Here’s an example:  Amy, who works for a small business that uses the accrual method, accrued 32 hours in 2024 but used eight hours, leaving 24 hours to carry over into 2025. She will accrue 48 more hours in 2025, totaling 72 hours by midyear (24 from 2024 + 48 from 2025). Once she reaches 80 hours, she will stop accruing hours.

2024 Minnesota Statutes

Source: https://www.revisor.mn.gov/statutes/cite/181.9446?utm_medium=email&utm_source=govdelivery

181.9446 ACCRUAL OF EARNED SICK AND SAFE TIME.

(a) An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. Employees may not accrue more than 48 hours of earned sick and safe time in a year unless the employer agrees to a higher amount.

(b)(1) Except as provided in clause (2), employers must permit an employee to carry over accrued but unused sick and safe time into the following year. The total amount of accrued but unused earned sick and safe time for an employee must not exceed 80 hours at any time, unless an employer agrees to a higher amount.

(2) In lieu of permitting the carryover of accrued but unused sick and safe time into the following year as provided under clause (1), an employer may provide an employee with earned sick and safe time for the year that meets or exceeds the requirements of this section that is available for the employee’s immediate use at the beginning of the subsequent year as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and safe time at the end of a year at the same base rate as an employee earns from employment and in no case at a rate less than that provided under section 177.24 or an applicable local minimum wage; or (ii) 80 hours, if an employer does not pay an employee for accrued but unused sick and safe time at the end of a year.

(c) Employees who are exempt from overtime requirements under United States Code, title 29, section 213(a)(1), as amended through January 1, 2024, are deemed to work 40 hours in each workweek for purposes of accruing earned sick and safe time, except that an employee whose normal workweek is less than 40 hours will accrue earned sick and safe time based on the normal workweek.

(d) Earned sick and safe time under this section begins to accrue at the commencement of employment of the employee.

(e) Employees may use earned sick and safe time as it is accrued.

History:

2023 c 53 art 12 s 5; 2024 c 127 art 11 s 8